Technical Analysis

Introduction

Technical analysis –is market dynamics research, mostly through graphs, to forecast future direction of the price.

Formulate three postulates, which, as the three pillars, «worth» Technical Analysis:

1. Price (course) takes into account all

Every time the price effect acting, a huge number of (fundamental) factors.

Some of them «pressure» on the price up, others down.

Price and factors influencing it.

Price and factors acting on it . Factors such scores may be tenths or even hundreds. And they all have different meanings, different «weight» and a different meaning in the eyes of the market .... But the price under the influence of all these factors have shown some value. Ie the price at a time already «took into account» all the factors that have already responded to them! Therefore, technical analysts believe that a correct analysis elect not difficult to even incorporate the fundamental factors, as a result of their influence - the schedule price.

2. The movement of prices is subject to trends (trend)

The trend- is the main direction of movement of prices. The main objective of the trader - is to identify the direction of the trend as early as possible and to trade in the direction of its motion.

3. There are three types of a trend

Uptrend. Price moves upwards. This trend is called bullish historically.

Downtrend. Price moves downwards. This trend is called bearish historically.

Sideways trend. Price is fluctuating upwards and downwards. No distinct trend forms. This trend is called flat, whipsaw, range.